Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Question
Chapter 33, Problem 8DQ
a)
To determine
Arguments for engaging in expansionary monetary or fiscal policies under the given circumstances.
b)
To determine
Arguments for engaging in contractionary monetary or fiscal policies under the given circumstances.
c)
To determine
More persuasive argument among the two.
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1. What is a minor but important change you would like to see applied to fiscal policy?
2. What is a minor but important change you would like to see applied to monetary policy?
The table above shows Econland’s economy aggregate demand and aggregate supply schedules. Econland’s potential GDP is $400 billion.
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Chapter 33 Solutions
Economics: Principles & Policy
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